Canada's chief trade negotiator says the 1 July USMCA review deadline shouldn't be viewed as a make-or-break moment, as the trade agreement will remain in force even if disputes with Washington remain unresolved.
Canada’s chief trade negotiator, Janice Charette, has indicated on Tuesday, 21 April 2026, that not all trade disputes with the US will be settled by the 1 July review deadline for the North American free trade agreement, but emphasised this won’t trigger the deal’s collapse.
Speaking at a Canadian Chamber of Commerce event in Ottawa, Charette described the upcoming date as merely a “checkpoint” rather than a critical threshold.
The USMCA agreement, known as CUSMA in Canada, requires all three member countries—Canada, the US, and Mexico—to review and extend the deal for six years by 1 July. Without extension, the agreement would shift to annual reviews.
Business leaders have expressed concern that yearly reviews could create significant uncertainty, potentially disrupting investment decisions and employment planning across North America.
Charette, who assumed her role in February, noted that formal negotiations haven’t begun, though Canada and the US have discussed sector-specific tariffs affecting steel, aluminium, automotive, and lumber industries. Given the complexity of outstanding issues and America’s broader trade commitments, she said, resolving everything by the deadline would be unrealistic.
The trade negotiator stressed that even without full resolution by 1 July, the agreement itself remains valid.
Canada currently enjoys one of the world’s lowest effective US import tariff rates thanks to USMCA exemptions.
Charette clarified her mandate focuses on “protecting the fundamentals of this agreement, not revisiting them,” while seeking relief from US tariffs and addressing persistent challenges in softwood lumber and other sectors.
Earlier, in January, the US President Donald Trump warned that Canada could face serious consequences if it moves forward with closer trade ties with China. This follows after Canada and China reached a preliminary trade agreement aimed at resetting their relationship and removing key barriers during Prime Minister Mark Carney’s visit to Beijing back in January.
